Management Test 2, C 5, 6, 7
Once implemeted, managers need ______________ to keep strategic plans on track. A- control systems B- organizational assessment C- IT infrastructure D- trend analysis
A
Under former CEO Kalanick, when Uber entered into a new market, it often disregarded local laws and allowed its drivers to begin work illegally. Which step in the ethical decision tree was Uber not considering? A- is the proposed action legal B- does it maximize employee value C- would it be unethical not to take the action D- does it maximize shareholder value E- is it ethical to take the action
A
Idris makes a commitment to have coffee with one person he doesn't know well at his organization each week so that he can learn about their history with the company. Understand the business Broaden your task and functioal knowledge
Broaden your task and functioal knowledge.
How much should we set aside for new product development? Functional-level strategy Corporate-level strategy Business-level strategy
Business-level
Which joint ventures and/or acquisitions should we pursue? Functional-level strategy Corporate-level strategy Business-level strategy
Corporate-level
Starbucks serves premium quality coffee beverages and food items and has over 28,000 locations across the globe. The company also offers bottled versions of some of its products in grocery stores and has a branded liqueur through its partnership with Jim Beam. Differentiation strategy Focused-differentiation strategy Cost-focus strategy Cost-leadership strategy
Differentiation strategy
The goal of this strategy is to offer unique products or services of superior value to a wide target market. Differentiation strategy Focused-differentiation strategy Cost-focus strategy Cost-leadership strategy
Differentiation strategy
Our product is targeted at young professionals under 35 years of age. That group is growing. Strengths Weaknesses Opportunities Threats
Opportunities
Word is that a new highway is being built in the next couple of years, making it easier to transport our products from the factory. Strengths Weaknesses Opportunities Threats
Opportunity
In 2018, Novartis, a Swiss multinational pharmaceutical company, acquired Avexis, a clinical-stage gene therapy company. Vertical integration Related diversification Unrelated diversification
Related diversification
Luxury fashion brand Coach, Inc. acquired Kate Spade New York-another luxury fashion and lifestyle brand--in 2017. Vertical integration Related diversification Unrelated diversification
Related diversification
After a recent expansion, the company wants to avoid growing too quickly. Growth strategy Defensive strategy Stability strategy
Stability strategy
The company uses a fair amount of short-term debt financing through the bank. Economic projections indicate that interest rates may rise in the future and credit will be more difficult to obtain. Strengths Weaknesses Opportunities Threats
Threat
There have been several upcoming companies that are beginning to enter our market space. Strengths Weaknesses Opportunities Threats
Threat
Dahlia is a recent college graduate at her first architectural job. She's just getting started financially and decides not to join her field's major professional association because she thinks that it's not worth the annual fee. Understand the business Broaden your task and functional knowledge
Understand the business.
Rex is participating in a job rotation program at his new workplace, which gives him the chance to get to know as many aspects of the company as possible. Understand the business Broaden your task and functional knowledge
Understand the business.
In 2018, Boeing's aerospace company announced its plans to buy KLX, a company that distributes aerospace fasteners and consumables. Vertical integration Related diversification Unrelated diversification
Vertical integrations
The equipment the company owns is last gerneration and does not havae the latest technology. Strengths Weaknesses Opportunities Threats
Weakness
Management does not provide a big budget to support the world-class staff hat work for the company. Strengths Weaknesses Opportunities Threats
weakness
To decide how much an insurance policy should cost a customer, underwriters use ______, such as historical industry trends and loan characteristics, to predict risk levels. A- seasonal trends B- diagnostics C- data analytics D- logistics
C
The employess who work for us are highly skilled and leaders in their field. Strengths Weaknesses Opportunities Threats
Strength
The R&D program at the company produces world-class products. Strengths Weaknesses Opportunities Threats
Strengths
Which of the following presented a barrier to rational decision-making at Boeing? A- time B- complexity C- imperfect information D- information overload E- cognitive capacity
A
What amount should we invest in employee development? Functional-level strategy Corporate-level strategy Business-level strategy
Business-level
What sum will we allocate toward facilities expansion? Functional-level strategy Corporate-level strategy Business-level strategy
Business-level
Scenarios of decision making and steps
Complexity Information overload Conflicting goals Different cognitive capacity, values, skills, habits, and unconscious reflexes Time and money constraints Imperfect information Different priorities
What products and services shall we offer? Functional-level strategy Corporate-level strategy Business-level strategy
Corporate-level
A real estate development company is considering a deal to develop 1,000 condominium units. This deal largely rests on a that the city's population will grow by 23% over the next decade. A- trend B- benchmark C- forecast D- SWOT analysis
C
A _______ is a graph of decisions and their possible consequences. A- corporate hierarchy B- resolution graph C- decision-result assessment D- decision tree
D
When Bedisa is analyzing underlying causes, she is engaged in... A- hubris B- hindsight bias C- analysis D- diagnosis
D
The research and development department and the production department do a great job when we ramp up production, but the customer service department takes time to catch up. Growth strategy Defensive strategy Stability strategy
Stability strategy
Clorox Company, best known for bleach and cleaning products, purchased Burt's Bees, best known for its natural beauty and personal care products, in 2007. Vertical integration Related diversification Unrelated diversification
Unrelated diversification
What business are we in? Functional-level strategy Corporate-level strategy Business-level strategy
Corporate-level strategy
The goal of this strategy is to offer unique products or services of superior value to a wide target. Differentiation strategy Focused-differentiation strategy Cost-focus strategy Cost-leadership strategy
Focused-differentiation strategy
Emilio and Dylan are studying the strengths and weaknesses of their construction business, Construction Concepts, as well as researching the opportunities and threats in the external environment. They are conducting a... A- SWOT analysis B- synergy plan C- contingency plan D- forecast
A
Snowcap Ice Cream produces over a dozen delicious ice cream flavors and a number of individually packaged frozen treats. Which of these strategies would represent vertical integration for Snowcap? A- purchasing Mountain Dairy mild farm B- acquiring a beverage bottling plant C- opening a personal tax accountant division D- setting their prices lower than the competitor's prices
A
Which models of decision-making describe how managers actually make decisions? A- nonrational B- rational C- analytical D- intellectual
A
To be profitable and to grow, firms need a competitive advantage that is based on products or services that are valuable, rare, and difficult to imitate. Which of these examples is most likely to have a competitive advantage? A- a portrait-painting service by a very talented artist who is known for her ability to make all men look handsome and all women look beautiful B- a souvenir shop in a beach town that sells dried sand dollars, jewelry made of shells, and tie-dyed shirts. C- an independent book store that sells used books, kick-knacks D- a cat-sitting service, where you take care of people's cats when they are on vacation
A- a portrait-painting service by a very talented artist who is known for her ability to make all men look handsome and all women look beautiful
To prepare for an upcoming interview, Loic has reviewed his resume, prepared his questions, and thought through answers to the most common interview questions. He feels well prepared. At the interview, Loic is asked to respond to a scenario question in which a problem is presented. If the interviewer prioritizes critical thinking, she is probably trying to determine if Loic... A- can consider alternative solutions and remain open-minded B- can make quick decisions C- demonstrate strategic planning experiences D- understand the inner workings of the company
A- can consider alternative solutions and remain open-minded
Crystal Coast is an all-inclusive beachside resort. It offers lodging, six restaurants, dancing, snorkeling, parasailing, and spa treatments. On the resort grounds, Crystal Coast also has a dive center, jet skis, and a water park. All of these amenities are only available to customers staying at Crystal Coast. Crystal Coast's strategic position emerges from... A- few needs, many customers B- broad needs, few customers C- few needs, few customers D- broad needs, many customers
B
During a situational analysis of the ___________ of her dog training service, Jaela determined that one of her strengths was that trained dogs retained their skills for at least three months after training and that one of her weaknesses was that very few clients brought another dog to her for training. A- growth strategy B- internal environment C- external environment D- forecasting
B
Stores of data that are so vast that conventional database management systems cannot handle them, and very sophisticated analysis software and supercomputing-level hardware are required, are known as ____. These data include not only data in corporate databases but also web-browsing data trails, social network communications, sensor data, and surveillance data. A- cyberage databases B- big data C- cloud farms D- super data
B
Uber reviews and evaluates each ride, which can be in the millions each day, in order to set surge pricing. This concept is most closely related to which of the following? A- non-rational decision making B- data analytics C- satisficing D- intuition E- bounded rationality
B
Tomio has been working as an assistant database analyst for three months. During a recent conversation with his supervisor, Tomio explained his goal "to improve his computing skills by the end of the year." Is this a SMART goal? A- Yes, SMART goals should set a timeline for being achieved. B- No, SMART goals must be specific an d measurable. C- No, SMART goals must have a target date. D- Yes, SMART goals shuld be results-oriented.
B- No, SMART goals must be specific an d measurable.
Paz has been an attorney for ten years and decides that she can stop attending annual continuing education seminars now that she knows everything there is to know about her job. Understand the business Broaden your task and functional knowledge
Broaden your task and functional knowledge.
After establishing the mission, vision, and values, what is the next step in strategic management? A- maintaining strategic control B- encouraging new ideas C- assessing the current reality D- implementing the strategy
C
As the CEO of a mid-size airline, Karyn knows that most commercial airplanes are manufactured by either Airbus or Boeing. To mitigate the __________ of the airline industry, Karyn explores options for her company to manufacture its own airplanes. A- threats of new entrants B- bargaining power of buyers C- bargaining power of suppliers D- rivalry among competitors
C
In the third step of the strategic management process, managers should... A- establish the organization's purpose or reason for being B- conduct an organizational assessment C- translate the broad mission and vision into a corporate strategy D- check on possible roadblocks within the organization's structure and culture
C
Samir owns a dental practice, but business has slowed down significantly over the last six months. Which analysis would you recommend to Samir to help him determine whether his dental practice has competitive potential? A- strategic planning B- tend analysis C- VRIO framework D- SWOT analysis
C
When Henry Ford implemented the assembly-line process to dramatically decrease the time and resources and needed to make automobiles, he was pursuing a _________ strategy. A- focused-differentiation B- differentiation C- cost-leadership D- cost-focus
C
Which level of strategy is concerned with how much to spend on marketing or whether to expand facilities? A- operational B- practical C- business D- corporate
C
Zahra, the human resources manager, has significant experience handling ethical issues in the workplace. Over the years she has received extensive training in matters of workplace ethics. Due to Zahra's legal background (she is a member of the state bar association), the management of her company relies on Zahra to assist them with legal issues, especially with ethical dilemmas. Her organization should appoint Zahra as the... A- oversight specialists B- ombudsman officer C- ethics officer D- proprietart officer
C
Which of these is an example of a means-end chain? A- Frequently missing deadlines is a mena s to acoountable leadership. B- Focusing on new product development is a menas to ignoring customer satisfaction concersn. C- Implementing a cleaning chedule to ensure all parts of the restaurant are deep cleaned each month is a menas to earning the highest cleanliness rating during the next health inspection. D- Monthly changes in strategic plan are a means to employee frustration and confusion.
C- Implementing a cleaning chedule to ensure all parts of the restaurant are deep cleaned each month is a menas to earning the highest cleanliness rating during the next health inspection.
Which of these represents the company's mission statement? A- Ferrari: To make the world dream. B- Airbnb: To tap into the universal human yearning to belong. C- Linkedln: To connect the world's professionals to make them more productive and successful. D- Amazon: To be Earth's most customer-centric company.
C- Linkedln: To connect the world's professionals to make them more productive and successful.
Dollar tree sells all items for $1 and caters to middle-class customers. Differentiation strategy Focused-differentiation strategy Cost-focus strategy Cost-leadership strategy
Cost-focus strategy
The goal of this strategy is to keep the costs and prices of a product or service low and target a narrow market. Differentiation strategy Focused-differentiation strategy Cost-focus strategy Cost-leadership strategy
Cost-focus strategy
The goal of this strategy is to keep the costs, and therefore prices of a product or service low and target a wide market. Differentiation strategy Focused-differentiation strategy Cost-focus strategy Cost-leadership strategy
Cost-leadership strategy
Waffle House has over 2,000 locations, keeps a simple menu that rarely changes (and hence spends little on R&D to develop new menu items), and most customers' tickets are around $7 or $8. Waffle House appeals to a broad range of consumers, including truck drivers, business travelers, college students, and families. Differentiation strategy Focused-differentiation strategy Cost-focus strategy Cost-leadership strategy
Cost-leadership strategy
According to the BCG matrix, stars are... A- beyond reach, due to their high purchase price and profits B- highly overvalued, so are not wise purchases C- companies with slow growth and high market share D- organizations with high growth and high market share which are definite keepers
D
Cornelius owns Grand Games, a high-end store that retails games and toys that are handcrafted and carefully selected. Cornelius targets customers who value artisanal work, such as backgammon sets made from reclaimed lumber by local crafters. There are several stores in the area that sell mass-made toys and games that are much cheaper. TO complete, Cornelius offers "game nights" where he sets up game boards and invites local teens and adults to take part in light-hearted competitions, where the winners receive a 10% discount on their next purchase. Cornelius also takes custom orders for game pieces that his customers want, such as 12-sided dice or newly invented games. All of Cornelius's activities are aimed at giving Grand Games a sustainable competitive advantage through... A- defensive strategy B- blue ocean strategy C- Vertical integration D- strategic positioning
D
Which of the following lists represents the order of levels of strategy from the top of the organization downward? A- executive, functional, practical B- business, operational, corporate C- corporate, practical, business D- corporate, business, functional
D
Emma, a nurse at a long-term care facility, recently submitted her goals to the director of nursing. One of Emma's goals is "to improve resident satisfaction by responding to every resident's call, page, or request within 3 minutes." Is this a SMART goal? A- Yes, SMART goals should have a deadline. B- Yes, SMART goals should be specific. C- No, SMART goals must be measurable. D- No, SMART goals must be attainable.
D- No, SMART goals must be attainable.
Constanza, who owns and operates a daycare, is meeting with all of her employees to set goals. One employee, Carlos, sets a goal of teaching 90% of the 4-year old students in his class to tie their shoes. Is this a SMART goal? A- No, SMART goals should be results-oriented. B- Yes, SMART goals are realistic and attainable. C- No, SMART goals should be measurable. D- No, SMART goals should specify a target date.
D- No, SMART goals should specify a target date.
Mark Zuckerberg stated that Facebook's early idea was to "Move fast and break things." He set that as his strategy for the company. Was he using the concept of strategy correctly? A- Yes, because mission statements are a part of strategic plans and this was a clear, concise mission. B- Yes, because it provided a vision for this new endeavor for others to share. C- Yes, because he involved managers from all parts of the organization. D- No, because a strategy sets a long-term goal and direction for an organization.
D- No, because a strategy sets a long-term goal and direction for an organization.
Which of these managers are engaged in tactical planning? A- Amzumi reviews inventory logs to determine which colors of her company's product need to be produced this week. B- Alberto looks for ways to diversity the supply chain to support a new product offering. C- Paul aligns organizational actions with two key sustainable development goals. D- Vilma determines how to entice customers to buy higher margin items to increase her divisions's profitability.
D- Vilma determines how to entice customers to buy higher margin items to increase her divisions's profitability.
You have an idea for a company that sources fruits from local farms to make fresh juices that will be sold on a subscription-based service to households within a 100-mile radius. How will you know if your company has a sustainable advantage? A- You will strategically invest in a healthy snack foods business to complement your fresh juice delivery service. B- You will set specific customer retention goals and decide how to achieve them. C- You will clearly outline your customers' juice needs and the expected revenues. D- You will produce and deliver juice more effectively than competitors.
D- You will produce and deliver juice more effectively than competitors.
After the recent recession, the company sold off vacant buildings. Growth strategy Defensive strategy Stability strategy
Defensive strategy
The recent expansion has been successful, but we don't want to spread ourselves too thin. Growth strategy Defensive strategy Stability strategy
Defensive strategy
Afterglow Cosmetics sells cosmetics that are manufactured in a gluten-free facility, and all of its products are certified gluten-free. Afterglow cosmetics prices are in line with other high-end cosmetics brands. Differentiation strategy Focused-differentiation strategy Cost-focus strategy Cost-leadership strategy
Focused-differentiation strategy
How should our division market our new program? Functional-level strategy Corporate-level strategy Business-level strategy
Functional-level
How should we structure compensation for those working on our team's new initiative? Functional-level strategy Corporate-level strategy Business-level strategy
Functional-level
What's the best way to integrate our department's latest innovation with older versions of the product? Functional-level strategy Corporate-level strategy Business-level strategy
Functional-level
The research and development department and the marketing department make some alterations to a current product with the intention of attracting new customers. Growth strategy Defensive strategy Stability strategy
Growth strategy
The top managers are considering a merger. Growth strategy Defensive strategy Stability strategy
Growth strategy
In the 1930s, Mars Incorporated (maker of Snickers and other popular candies) purchased Chappell Brothers canned dog food company. Much of Mars' business today comes from pet food brands such as Whiskas and Pedigree. In 2017, Mars acquired VCA, a company that owns hundreds of dog daycare facilities and animal hospitals, to add to its Mars Petcare portfolio. Vertical integration Related diversification Unrelated diversification
Unrelated diversification
Fast fashion retail giant, Zara is able to get designs from the catwalk to the retail store at incredible speeds. Zara can do this because it has acquired most of its supply chain, including designers, manufactures, and distributors. Vertical integration Related diversification Unrelated diversification
Vertical integration